Slovenia, Russia harmonize South Stream agreement

Slovenia and Russia have harmonized an agreement for the South Stream pipeline, which is expected to be signed during the Slovenian PM's visit to Moscow. Administrator of the Energy Directorate of the Slovenian Economy Ministry, Janez Kopac, told daily Dnevnik that it is possible that the agreement will be signed during the qualifying match for the World Cup between Slovenia and Russia on November 14. Slovenia, Russia harmonize South Stream agreement "Slovenian company Geoplin and Russian Gazprom will have 50 percent participation each in the joint company which will be founded in accordance with the agreement, and will have a special taxation status which the Russian side has been asking for during the last several months,” Kopac said. The company, which will build and administer the Slovenian branch of the pipeline, will have the right to reimbursements only for oversights in the case of additional taxes, but only within the bounds that state aid allows. The Slovenian side added a decree which frees Slovenia of damages that could result from possible changes in European legislature. The new company was designed to work in accordance with all rules of the European Union and will have to enable access to the pipeline for other participators in the market, but will also have to receive a license from Brussels before it can begin working. Further steps for building the pipeline will be known aft the Slovenian and Russian gas officials finish a feasibility study.

Slovenia, Russia harmonize South Stream agreement

"Slovenian company Geoplin and Russian Gazprom will have 50 percent participation each in the joint company which will be founded in accordance with the agreement, and will have a special taxation status which the Russian side has been asking for during the last several months,” Kopač said.

The company, which will build and administer the Slovenian branch of the pipeline, will have the right to reimbursements only for oversights in the case of additional taxes, but only within the bounds that state aid allows.

The Slovenian side added a decree which frees Slovenia of damages that could result from possible changes in European legislature.

The new company was designed to work in accordance with all rules of the European Union and will have to enable access to the pipeline for other participators in the market, but will also have to receive a license from Brussels before it can begin working.

Further steps for building the pipeline will be known aft the Slovenian and Russian gas officials finish a feasibility study.